Max Healthcare Institute (543220) Q4 25/26 earnings summary

Executive summary

• Phased commissioning of over 20% additional brownfield capacity across Mohali, Nanavati (Mumbai), and Max Smart (Delhi) in the last two quarters, with all beds to be operational in the next 2-3 months; another 10% capacity expected from Gurugram later in 2026.

• Acquisition of a controlling 58.28% stake in Kalinga Hospital (Bhubaneswar) completed in May 2026, marking entry into Eastern India and providing a platform for future expansion.

• Board approved INR 1,400 crore investment for a new 700-712 bed greenfield hospital at Shaheed Path, Lucknow, to be commissioned by FY30.

• 22nd consecutive quarter of year-on-year growth, with FY26 gross revenue up 16% YoY to INR 10,538 crore, operating EBITDA up 14% YoY to INR 2,638 crore, and PAT after exceptional items up 22% YoY to INR 1,631 crore.

• Final dividend of ₹2 per equity share recommended, subject to shareholder approval.

Financial highlights

• Q4 FY26 gross revenue: INR 2,664 crore (+10% YoY, +2% QoQ); operating EBITDA: INR 682 crore (+8% YoY, +5% QoQ); EBITDA margin: 26.8%.

• FY26 gross revenue: INR 10,538 crore (+16% YoY); operating EBITDA: INR 2,638 crore (+14% YoY); EBITDA margin: 26.2%.

• Q4 profit after tax: INR 387 crore, up from INR 376 crore YoY and INR 344 crore QoQ.

• Free cash flow in Q4: INR 581 crore; net debt at FY26 end: INR 1,908 crore (net debt/EBITDA < 1); cash from operations: INR 1,541 crore.

• Pre-tax ROCE: 20.9% in Q4 FY26 (vs 23.8% Q4 FY25); 21.8% in FY26 (vs 25.9% FY25).

Outlook and guidance

• Focus on scaling newly commissioned capacities, integrating Kalinga Hospital, and progressing expansion projects including Sector 56 Gurgaon and Lucknow.

• 500-bed Gurgaon hospital to be commissioned by end of FY27, with phased operationalization starting at ~200 beds; 712-bed Lucknow hospital expected by FY30.

• Additional brownfield/asset-light expansions planned in Pune, Dwarka, Dehradun, and other locations.

• Expect operating leverage as new beds ramp up occupancy; no major regulatory delays anticipated for upcoming projects.